Bosses Oppose Govt Threat To Revoke License Of Security Companies Over Ksh30K Salary

The Federation of Kenya Employers (FKE) has demanded that the government reinstate the licences of nine security companies cancelled by the Private Security Regulations Authority (PSRA), a move the latter is counting on to compel companies to pay private security officers a monthly salary of Ksh30,000.

While opposing PSRA's new regulations, the employers body in a statement sent to Viral Tea expressed concern over the Authority's recent decision saying it has adversely affected the operations of several security companies and has exposed the sector to severe job losses, business disruptions, and reputational damage.

FKE therefore strongly appealed for the immediate reinstatement of licenses for the nine security firms whose licenses were summarily cancelled by the PSRA after expressing that the cancellation was done without adherence to fair administrative processes enshrined in the Constitution of Kenya.

FKE CEO Jacqueline Mugo speaking during the release of the Skills Needs Survey report on November 21, 2023. /FKE KENYA

"There was no prior written notice, no opportunity for the companies to defend themselves, and no chance to address identified gaps.

"This hasty decision has resulted in substantial losses for the affected companies, impacting the livelihoods of countless youth, and causing disruptions for clients who rely on these services," read the statement in part.

Earlier, Faizal Mahamed, the Director-General for the Private Security Regulation Authority, clarified that in addition to publishing the names of the firms that fail to comply with the new policy, the firms would be subjected to a statutory review of their registration and license status.

"The Authority intends to soon publish a legal notice containing a list of security companies that have failed, declined, or otherwise neglected to submit their legal commitments to pay Private Security Guards the Government set a minimum wage of KES. 30,000/="

"Any company that fails to submit a duly signed legal commitment which forms part of the terms and conditions attached to its certificate of registration, shall be subjected to a regulatory audit review," stated Mahamed.

According to the authority, this will help the firms abide by the law and also help it in gatekeeping and ensuring all private security officers get the right amount of wages.

Furthermore, FKE called for the suspension of the Guard Force Numbers (GFNs) order pending comprehensive consultations.

"It is crucial to determine whether the assigned numbers are a product of training and guard registration or if they stem from employment by a registered security firm or club. This clarity is vital for the industry's stability and the effective implementation of any related regulations," added the statement.

The federation also accused PSRA of threatening the security firm’s clients, deterring them from contracting with unlicensed/unregistered service suppliers.

FKE called for the PSRA board to streamline the process for licensing and registration before any enforcement actions are taken, adding that "We advocate for social dialogue in the sector."

Earlier media reports had indicated that the Government had set the minimum gross pay for security guards at Ksh30,000 per month, which included a basic pay of Ksh18,993, a house allowance of Ksh2,850 and an overtime allowance of Ksh8,157. 

It was further reported that any employer who fails to adhere to the aforementioned directive would be fined Ksh2 million or be imprisoned or subjected to both.

Mahamed had earlier announced that security guards in Nairobi should earn Ksh30,000 and Ksh27,183 for the rest of the country.

However, the new regulations sparked uproar across the country's private security sector and even triggered a row within President William Ruto's Cabinet, pitting Labour Cabinet Secretary (CS) Florence Bore against her counterpart in the Interior Ministry, Kithure Kindiki.